Small business entrepreneurs are notorious for underearning, (Solopreneurs: Better & Smarter But Maybe Not Richer) even though many small business owners are paid properly according to industry, experience, and competition. Additionally, many small business owners do not overspend. Why, then, are you not making the kind of money you want? Here are 6 critical pieces every small business owner needs to grow their business revenue…and their paycheck.
1. Create a budget. Budgets help you set and achieve your revenue goals. Running a business without a budget is stressful! It’s much easier to achieve financial goals when they are clear.
Anticipate your expenses to determine the sales volume needed to meet the financial obligations and goals for your small business. If you’ve been in business 3-5 years, your expenses have likely stabilized. Previous years expenditures serve as a good starting point to create your budget. If your business expenses still seem a bit wobbly, your business coach/strategist is a helpful resource for budget and sales projections.
2. Bill for your time. Benjamin Franklin said, “Time is Money”. He also said, “Lost time is never found again.” Time is not a Twinkie with a “never ending expiration date”. Time is like milk…it expires. At the conclusion of each hour, day, and week in business, unbilled (or unbillable) time takes its last breath…never to be experienced again. Don’t let billable time expire.
3. Fill your sales pipeline. A common cause of small business underearning, despite accurate pricing strategies, is not enough leads in the sales pipeline. The solution? Focus your efforts on filling your sales funnel for 90 days. You’ll be surprised at what a full sales funnel can do to grow your revenue!
4. Prioritize your business sales and marketing activities. I fully understand the gravitational pull of placing client needs before your business needs. Balancing your business needs with those of your clients is a delicate one. However, if you fail to meet the needs of your business, you’re eventually not able to serve your clients. You’ll no longer be in business. Make your business needs a priority.
5. Don’t take work that pays less than you require. Your business has a financial requirement. It’s what it needs to make/earn in order for you to stay in business. Although we live in an “everything is negotiable” economy, don’t take on projects/client work for less than your business needs to run effectively. It ties up your time and prevents you from selling that time to someone else at your full rate.
6. Understand your small business numbers. Cash flow, budget, profit and loss, and balance sheet all represent the financial health of your business. Understand what each of the terms mean and how they impact you and your business. Next, make sure you know your small business numbers. It makes you a much smarter, richer small business owner!
Isn’t it time for you to grow your small business revenue?
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